Simpson Manufacturing Co., Inc. reported a modest increase in net sales for the fiscal year ending December 31, 2024, reaching $2.23 billion, up 0.8% from $2.21 billion in 2023. The company's net income for the year was $322.2 million, a decrease from $354.0 million in the previous year, resulting in diluted earnings per share of $7.60 compared to $8.26 in 2023. The decline in profitability was attributed to increased operating expenses, including higher personnel costs and software-related expenses, as well as lower gross profit margins, which fell to 46.0% from 47.1% in the prior year.
In terms of operational developments, Simpson Manufacturing continued to expand its product offerings and geographic reach. The company completed several acquisitions in 2024, including Calculated Structured Designs, Inc., Monet DeSauw, Inc., and QuickFrames USA, LLC, which are expected to enhance its capabilities in the engineered wood and commercial construction markets. The company also invested significantly in its facilities, including the expansion of its Columbus, Ohio facility and the construction of a new facility in Gallatin, Tennessee, aimed at improving production efficiency and service levels.
The North America segment, which accounted for approximately 77.8% of total net sales, saw a 1.1% increase in sales, driven primarily by higher volumes in wood construction products. Conversely, the Europe segment experienced a slight decline in sales, attributed to lower sales volumes despite a positive impact from foreign currency translation. The Asia/Pacific segment reported a modest increase in sales, reflecting growth in both wood and concrete construction products.
Looking ahead, Simpson Manufacturing anticipates a challenging environment in 2025, with U.S. housing starts expected to improve only slightly. The company projects consolidated operating margins to range between 18.5% and 20.5%, influenced by ongoing investments and the anticipated sale of its old Gallatin facility for $19.1 million. The effective tax rate is estimated to be between 25.5% and 26.5%. The company remains committed to its growth strategy, focusing on innovation, expanding its product lines, and enhancing customer service to achieve above-market growth relative to U.S. housing starts.
About Simpson Manufacturing Co., Inc.
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